Hi Radhika,
For guidelines on setting parameters of your PID controller, you can search and find good information in books and all over the web (e.g. root locus and Bode plots).
As far as LabVIEW is concerned, you might want to take a look at the Control Design Toolkit, and its manual, available here.:
http://sine.ni.com/nips/cds/view/p/lang/en/nid/13854
And you could use something like a simulate signal express VI to simulate an input to your system.
Hope that helps! Take care,
-Sam F, DAQ Marketing Manager